1. The bookkeeper in recording interest income for both years on an investment in 4% bonds with a par value of $96,300 made the following entry for each year: Cash 3,852 Interest Income 3,852 The bonds were purchased at a discount of $8,300 on January 1,2025 , to yield an effective interest rate of 5%. (Assume that the effective-yield method should be used.) 2. Sales for 2026 included amounts of $56,500 which were delivered in 2025 and paid for in 2026 . Title passed to the purchaser upon delivery. 3. Interest of $85,900 related to the construction of a manufacturing facility had been erroneously charged to expense during 2025 instead of being capitalized as part of the facility's cost. The facility was completed and occupied on January 1,2026 . The company applies a rate of 5% to the balance in the building account at the end of the year in its determination of depreciation charges. 4. The inventory on December 31,2025 , was overstated by $16,300. Prepare a schedule showing the determination of corrected income before taxes for 2025 and 2026. (Enter negative amounts using either a negative sign preceding the number e.g. - 15,000 or parentheses e.g. (15,000). Round answers to 0 decimal places, e.g. 25,000.) Income before tax \( \frac{2025}{\$ \longdiv { 6 2 9 , 8 0 0 }} \frac{2026}{\$ \longdiv { 4 7 1 , 2 0 0 }} \) Corrections: Sales erroneously included in 2026 income 56,500 56,500 Overstatement of 2025 ending inventory 16,300 16,300 Adjustment to interest income Capitalize interest and related depreciation ^ Corrected income before tax $ $